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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />November 23, 2011 <br />Mr. Bob Warneke <br />Natural Soda, Inc. <br />3200RBC31 <br />Rifle, CO 81650 <br />Re: Nahcolite Project, Permit No. M- 1983 -194, Financial Warranty Increase, Revision No. SI -2 <br />Dear Mr. Warneke: <br />In an effort to ensure that the financial warranty remains adequate to reclaim the site per the requirements of the approved <br />reclamation plan, the Division of Reclamation, Mining and Safety (DRMS) has updated the reclamation cost estimate <br />(copy enclosed). Therefore, pursuant to section 34- 32- 117(4) of the Colorado Land Reclamation Act, adequate financial <br />warranty must be submitted to the BLM and proof of submittal provided to the DRMS within 60 days of the mailing date <br />of this letter. The increase must be submitted prior to January 23, 2012. Please review the enclosed figures as soon as <br />possible contact our office if any errors are noted. <br />The DRMS increased the current Financial Warranty for this permit to $1,976,514.59, in accordance with Rule 4.2.1 of <br />the Rules and Regulations. This is an increase of $40,293.59. <br />Per Rule 4.2.1(6), when mining on federal land and the federal land management agency requires that a Financial <br />Warranty be posted with their agency, the amount of financial warranty posted with the state shall be the difference <br />between the amount required to be posted by the federal land management agency and the amount required by the Mined <br />Land Reclamation Board. In this case the Division currently holds a Reclamation Bond amount of $178,250.00, therefore <br />the additional required warranty of $40,293.59 must be submitted to the Bureau of Land Management White River Field <br />Office. <br />If you have any questions, please contact me at the Division of Reclamation Mining and Safety, Grand Junction Field <br />Office, 101 S. 3 Street, Suite 301, Grand Junction, Colorado, 81501, Telephone no. (970) 241 -2042. <br />Sincerely, <br />Travis H. Marshall <br />Environmental Protection Specialist <br />cc: Barbara Coria, DRMS <br />Steve Shuey, DRMS <br />Enclosure(s) <br />Paul Daggett <br />BLM — White River Field Office <br />220 East Market Street <br />Meeker, CO 81641 <br />Office of Office of <br />Mined Land Reclamation <br />EPL <br />STATE OF COLORADO <br />NOV Z8 1011 <br />Division of Reclamation, <br />Mining and Safety <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />—&— <br />SAFETY <br />John W. Hickenlooper <br />Govemor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />